simulating arrow illusion
Model the glass, it is important that it is solid and has a thickness.
Simulated or modelled, the fluid has to intersect the glass. However, even with not-intersecting glass, the arrow will refract correctly.
Apply a Refraction BSDF to both objects (the glass and the fluid) in Cycles Material Nodes.




As you can see in the image, the fluid object intersects the glass. The fluid mesh is partially in between the inner and outer wall of the glass.